SAN DIEGO -- March 10, 2003 -- Qualcomm Incorporated (Nasdaq: QCOM) today updated its outlook for MSM™ phone chip shipments in the second fiscal quarter (ending March 30, 2002) and provided estimates for MSM phone chip shipments in the third fiscal quarter (ending June 29, 2003). The Company will provide financial guidance for the third fiscal quarter when it reports its second fiscal quarter results on April 23, 2003.
Second Quarter Fiscal 2003
Based on firm orders, the Company now expects to ship approximately 28 million MSM phone chips during the second quarter of fiscal 2003, exceeding its previous estimate of 27 million MSM shipments. Approximately 90 percent of MSM shipments in the second fiscal quarter are expected to be third-generation (3G) CDMA2000 1X and 1X-EV-DO. By comparison, total MSM phone chip shipments in the second quarter of fiscal 2002 were approximately 14 million MSM units.
Third Quarter Fiscal 2003
Based on its current outlook, the Company expects to ship approximately 23-25 million MSM phone chips in the third quarter of fiscal 2003, compared to approximately 16 million in the third quarter of fiscal 2002, an increase of approximately 44-56 percent year-over-year. Of the 23-25 million estimate in the third fiscal quarter, approximately 95 percent of MSM shipments are expected to be 3G CDMA2000 1X and 1X-EV-DO.
"Steady progress in 3G CDMA network deployments is continuing around the world, with 37 operators now providing 3G service in 19 countries around the globe," said Dr. Irwin M. Jacobs, chairman and CEO of Qualcomm. "The demand for our CDMA chipsets continues to be strong and we now expect MSM shipments in the second fiscal quarter to double compared to the year ago quarter. As suggested in our previous guidance, MSM shipments in the June quarter are expected to be up substantially year-over-year but lower sequentially due in part to the ongoing transition to CDMA2000 1X in China and completion of initial channel loading for Reliance's commercial launch in India."
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including but not limited to: changing global economic conditions, particularly in the telecommunications and Internet-related industries and the resulting uncertainty in forecasting future results; timing and receipt of license fees and royalties; integrated circuit order and shipment levels; the Company's ability to sustain or improve operational efficiency and profitability, the extent and speed to which CDMA is deployed, as well as the other risks detailed from time to time in the Company's SEC reports.